Report:- Syed Nizam ud Din Chishti
The restrictions imposed to control the Corona epidemic have now been significantly eased and business or shopping opportunities are now fully available. But the people of Germany are not getting interested in buying or shopping. Due to this, the reserves of money are increasing among the people.
The European stock market has also seen a sharp rise due to rising cash reserves among the people. At the beginning of 2021, cash reserves exceeded an estimated 7 trillion euros, but the last quarter of 2021 saw a further increase.
In the second quarter, claims against cash, securities, bank deposits and insurance companies increased domestic assets to 7325 billion euros, up 159 billion euros from the end of March, according to data from Germany’s Bundesbank. Economists expect further increases over the year, however, Bundesbank figures do not show how large sums are distributed.
Experts say that if the situation continues as it is, it will increase further after Christmas.
Economists attribute this to the fact that Corona’s restrictions have led to a decline in public purchasing power and interest. Experts believe that people are relying on savings to cope with the incredible situation.
The tendency to keep cash in the bank to avoid losses and deductions has decreased because people can use cash immediately.